Remodel Your Portfolio With Home Depot
Hi everyone and welcome to the Yellow Tunnel community, a family of trading services dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits.
Time sure does fly. We've reached the halfway point of Q3 which is sometimes hard to believe. Kids are heading back to school and while the weather remains nice, fall is right around the corner. This week, we saw the release of the latest Federal Open Market Committee meeting minutes, July retail data, and a handful of marquee retail earning releases.
At home, we rang in the final round of family celebrations and events. As I stated last week, the early to mid-August time range is one that is always active in my household. With two birthdays and a wedding anniversary, our weekends are spent hosting or visiting family. This weekend, we celebrated my son's 6th birthday at home with an outdoor movie experience.
We rented out a big, inflatable theater screen and set up a projector with a movie of our son's choosing. Several of his friends came over and brought chairs, bean bags, snacks, and cushions. Everyone got comfy on the lawn and settled into Sonic the Hedgehog 2. The kids loved it, the neighbors were bewildered, and I wondered what exactly I missed in Sonic the Hedgehog 1.
The following day, it was time to celebrate my wife's birthday and as I said last week, due to the close nature of all three events, I always want to make sure I do something special just for her.
This year, we headed downtown. We rented a hotel for the night in Chicago's meatpacking district. The area, similar to that of New York's, is filled with high-end and notable eateries. With plenty of restaurants to choose from within walking distance, as well as an extraordinary selection of restaurants right in our hotel, we had a lovely stay.
Beyond the food, our hotel, The Hoxton, had plenty of modern amenities to enjoy. Restaurants on the first and top floors, as well rooftop bars, pools, and a 24/7 DJ. The location we stayed at was lively into the late hours of the night, or technically early morning. In contrast with our Sonic the Hedgehog night, this was a totally different speed. And while I enjoyed my time, I realized I am getting older and there is a big price to pay the next morning staying out into the wee hours of the night.
Returning from the city, I was happy to have early nights with the family at home and falling back into my routine. Sometimes that's all you need for a good reset or recharge when your routine gets stale or you overexert yourself with a busy schedule. One other thing I was excited to return to, having fresh energy, was my trading routine.
On Monday, stocks opened low only to rebound impressively, extending the Dow's longest unbeaten run since late May. At the midweek, indices sold off but found some support following the Federal Open Market Committee minutes release.
In the minutes, policymakers were open to continuing interest rate hikes but will be conscious about not going overboard. Similarly, the Fed said that if the public began to doubt the Fed’s resolve to raise rates enough to control inflation, then there would be a significant risk of high inflation becoming entrenched.
Also this week, we saw retail data released, showing U.S. retail sales remained steady last month. However, the drop in gas prices and new vehicle purchases significantly impacted these numbers. Estimates were in the range of 0.1% growth, but primarily saw a drop in auto as retail sales minus auto showed a 0.4% increase, and up 0.7% if gas was also excluded.
Sometimes it can be hard to keep up with all the releases and reports, as well as changing volatility, which is exactly what I did during my latest Strategy Roundtable, which takes place weekly on YellowTunnel.
Trying to keep up with the market by yourself can be overwhelming. That is why I encourage you to join a trading community where you may interact and analyze with others. I recommend checking out our latest Roundtable webinar in its entirety below:
How To Trade a Bear Market Strategy Roundtable
With the unpredictable nature of the market and the uncertainty ahead of us, I can’t emphasize enough how vital it is for our readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our I and my AI platform is navigating us in and out of select trades. It’s FREE and I highly encourage everyone to sign up to the Live Trading Room and keep checking in throughout the trading day.
Every Monday and Wednesday, I highlight our best strategies and potential trading setups via the DISCORD server. It’s the future of bringing together a trading community’s total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to:
I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specific stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade.
CURRENT TRADING LANDSCAPE
To close the week, U.S. indices sold off as volatility ticked up. On Friday, $2 trillion worth of stock and index options and comments from Federal Reserve officials came to an end. The market continues to process the latest comments from the Fed while economic reporting significantly slows down. While the Fed sent some mixed messages, rates will most likely continue to be adjusted this year.
Interest-rate-sensitive tech stocks are likely to be the most impacted, with the Nasdaq leading the way lower. After posting a fourth consecutive weekly gain last week, the tech-heavy index is headed for a 0.6% drop this week. Treasuries moved higher to end the week as a result of the latest Fed news and could continue to climb.
As of Friday, the 5-day chart shows the $SPY was trading 0.38% lower, near the $422 range. The S&P 500 sold off on Friday, alongside all major U.S. indices. Oil moved impressively higher on Friday while gold ticked lower.
The $DXY continues to steadily rise, currently trading near the $108 level. $TLT sold off throughout the week and continued to do so on Friday, finishing near the $113 mark.
I expect the short-term rally to come to an end as soon as this month or possibly early September. The bear market could resume its downward momentum into the September-October time frame.
I am watching the overhead resistance levels in the SPY, which are presently at $430 and then $440. The $SPY support is at $420 and then $406.
The dollar continuing its rebound from the previous pullback supports the notion of the short-term rally ending. As I review the current market conditions, I still believe the market remains overbought.
Similarly, retail sales came in weaker than expected but still showed some expansion, when removing auto and gas sales. With this news, the market still sold off- another indicator that the best part of the rally is behind us. Wage inflation continues to persist and with the majority of key economic reports behind us, all eyes are on next week's Jackson Hole meeting where inflation and interest rates will be discussed.
Overseas, we received key inflation data from Europe and England which came in worse than expected. In the report, core price inflation rose to an all-time high of 8.9% providing some pressure on the market worldwide.
The SPY is facing a 62% retracement, close to the January downtrend. As the trading landscape continues to change, I believe volatility in the market will remain high. I encourage readers not to chase the market and sell into the rallies.
At this time, I have a net bearish portfolio.
NEW EARNINGS POWER TRADER SERVICE
I recently launched our new Earnings Power Trader service which I am very excited about. Each week, our expert traders use our AI Tools to provide the Top Bullish and Bearish Stocks, each with an Entry Price, Target Profit, and Stop Loss.
This new service is special because it offers real-time alerts via SMS and access to Vlad's live positions and orders. When I put together this system, I wanted to be in the fight with other investors. That’s why I don’t play on your emotions to sell newsletters - I put my money where my mouth is.
Every trade recommendation that I make using this system – comes straight from the list of trade recommendations I use myself.
Not only that but every trade I make is logged in detail for you to review at any time. You can see my entire trading history, updated LIVE so that you can see, learn from, and even copy my trading strategy. Click here to learn more.
Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes I hold positions for 2-5 days by using options (selling OTM Calls and Puts spread) and targeting 1% target gain and 1% stop loss using stock price. The green color should be interpreted as a bullish signal and the red as a bearish signal.
How To Use Our Signals
Once you become a member, I encourage you to review our Live Trading Room recordings to see how I trade Aggressive Power Trader signals in my account. A snapshot of how we produce our Live Trading Room Sessions shows how we pack in a lot of information that can be accessed from whatever device you’re driving.
As a reminder, consider buying near the "BUY" level with a "10 days prediction" higher than the close price. In our live trading room, I usually hold a position for 1-2 days.
I allocate less than 5% of my portfolio if the position is being held overnight. On average, less than 1% of the portfolio should be at risk if you own a position for less than one day.
I enter a position at the predicted LOW (BUY) price or yesterday's close price. My stop loss is 1% and my target gain is 1% of the stock price. I target 75% accuracy using these signals.
Few subscribers asked about Options trading using the signals provided. Please review live trading room recordings. I often sell OTM credit put spread using weekly options and collect 0.5% using stock price. For example, if the stock is trading at $100, I would sell an OTM Put (strike less than 100) with an option BID price close to $0.5.
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-Unlimited access to the training library of past sessions
And most importantly: Access to a system that does all of this while handing you back your time - so you can spend it doing what you want to do instead of managing your portfolio constantly
All of this can be locked in for a special Charter discounted rate of $197/six months — plus, as an added end-of-summer discount, you’ll also receive another $100-Off for the first six months, that’s only $97, 75% off the price of regular membership.
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Charter Members receive FIVE bonus reports on AI trading
-Lock in your membership today, and you’ll get all of these bonus reports focused on how algorithms like Profit Accelerator Trader can help you zero in on the best trades in today’s hottest markets…
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Even with all this value, are you still hesitant to click that “buy” button?
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(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)
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SECTOR SPOTLIGHT
As the market remains overbought and a decline in economic reporting in the coming weeks, there is one sector I am keen on following at this time. I expect the market sell-off to resume in the near future, but I believe there is a unique opportunity in this sector as the top-building nature of the market concludes. More specifically, there is one ETF I will be utilizing in the upcoming week.
The SPDR S&P Retail ETF (XRT) is the primer retail index in U.S. retail sales. The ETF includes retail companies such as apparel, auto, electronic, department stores, food, drugs, and general merchandising. Online sales and marketing are included in the $550 million assets managed by XRT. Trading near $69.53, there are several trends that I like for this ETF to profit.
On the year, XRT is down 24% and has faced some rough months. However, over the last month, the ETF benefited from the short-term rally and traded almost 10% higher!
Plugging XRT into my A.I. toolset, I see there is room for upward growth - and with ease.
If this sector were to continue higher, I have also identified one symbol with recent earnings which I will be making a move on.
TRADE OF THE WEEK
When covering the retail sector, one symbol that I am seeing great signs for following their earnings release is Home Depot, Inc. (HD)